After David Cameron’s attendance at his first EU summit, in a statement to the House on the European Council, the Prime Minister said on Monday, “So on budget surveillance let me be clear – the UK Budget will be shown to this House first – and not to the Commission. … Of course we will share projections and forecasts just as we do with the IMF and other international bodies. … Co-ordination and consultation – yes. Clearance – no. Never.”
First, I am not clear on the difference between Consultation and Clearance – if one institution co-ordinates or consults with another to such an extent – as UK Government Ministers already do with the European Commission – then surely clearance is no longer needed. Brussels already has what it desires – the laying of the groundwork for the UK Budget. Why clear a Budget with Europe when it is Europe that has provided its basis?
Second, the PM must bear in mind that there is no substantive wording from the European Council that “the UK Budget will be shown to this House first – and not to the Commission.” I produced a report on these concerns at the time.
Third, the European Council Conclusions, which Mr. Cameron agreed to, stated that “from 2011 onwards, in the context of a "European semester", presenting to the Commission in the spring Stability and Convergence Programmes for the upcoming years, taking account of national budgetary procedures” – however, this year, for example, the UK Treasury’s Stability/convergence programme was delivered on 28/01/10, with a final EU Council opinion delivered on 26/04/10 – focusing on immediate deficit reduction, as in the Conservative manifesto – and based on which the UK Emergency Budget consists largely of an economic framework derived from European Commission guidance and advice. How will our situation differ? The European Commission already has a strong say. The thought that the Commission will take account of national budgetary procedures is questionable.
Fourth, the European Council Conclusions, which Mr. Cameron signed, clearly stated “The crisis has revealed clear weaknesses in our economic governance, in particular as regards budgetary and broader macroeconomic surveillance. Reinforcing economic policy coordination therefore constitutes a crucial and urgent priority.” How is this not further power over governing Britain?
Fifth, the European Council Conclusions also stated “Giving, in budgetary surveillance, a much more prominent role to levels and evolutions of debt and overall sustainability, as originally foreseen in the Stability and Growth Pact”. How is this not further European power?
Sixth, in a press conference following the EU Council in Brussels, Cameron said “The Council agreed that European cooperation will, and I quote, 'take account of national budgetary procedures'. I am clear that that means Britain will always present its Budget to Parliament first.” I would like to see what it means to 'take account of national budgetary procedures', as I do not think it is clear at all.